Three ways construction leaders harness digital transformation

The construction industry is lagging behind others when it comes to digital transformation. Some construction firms “are still using paper-based processes that can only be described as archaic,” according to a 2016 report by PricewaterhouseCoopers LLP’s Strategy1.

The industry’s old-school ways mean contractors waste time and money mailing revisions to blueprints, tracking paper receipts and invoices, or traveling long distances to do on-site inspections of small changes.

95% of construction and engineering professionals think tech/innovation will significantly change their business2.

As construction professionals shoulder even more pressure to boost razor-thin profit margins, leaders are beginning to embrace the digital revolution. Fifty-five percent of construction and engineering professionals said their industry is ripe for disruption in a 2017 global survey conducted by KPMG; 95% think technology/innovation will significantly change their business; and 74% believe such a change will happen in less than five years2.

Digital disruption doesn’t have to be a burden. Here are three ways to harness digital tools to your advantage.

Manage Projects From Anywhere

Hard drives and technology are more visible than ever on the job site. Crews are now using tablets, for example, to review and inspect plans instead of old-fashioned paper blueprints. Some new applications help managers inspect remote sites by providing digital photos.

In addition, project management software can save time and increase transparency by ensuring that updates, revisions and plan changes are shared in real time, cutting down on errors and delays.

Manage Jobs Better On-Site

Increasingly, on-site job leaders are using tech to monitor and improve operations in real-time.

New mobile platforms allow foremen to update blueprints immediately on-site, instead of having to make the trip back to the office. Workers can annotate and track punch lists from the construction zone, letting them work nimbly in the field when inevitable changes on-site arise.

New mobile platforms allow foremen to update blueprints immediately on-site, instead of having to make the trip back to the office.

Being able to adjust or change plans in real-time reduces or eliminates the time-delay that can be a killer on projects. Some digital tools allow foremen to immediately retrieve and compare data on actual project hours, budgeted hours, and remaining hours, which helps keep projects on or close to budget.

Harry, a VP of Operations at a midsize construction firm, said the way that work gets done is definitely changing. “There's not too many contractors that don't have somebody that’s schooled in software,” he said. “Most of them have gotten smart enough to know that that helps.”

Track Expenses, Everywhere, Digitally

Having centralized expense control enables the home office to get a birds-eye view of all the project expenses — even those out-of-state.

Owners of mid-size construction firms say that it helps control expenses when their out-of-state workers are aware that their spending is being reviewed regularly.

Jake, the owner and operations manager for a construction firm that does about $25 million in annual sales on projects in multiple states, said, “We want our guys that are out of state to be aware that we're reviewing what they’re spending.”

Turning to the latest digital solutions helps construction leaders quickly and easily tabulate expenses and other various needs for projects. Additionally, by avoiding paper, expenses don’t fall through the cracks and pile up without your knowledge.

“We know ahead of time what our costs are going to be,” said Robert, president of a mid-sized construction firm. “We break up those costs, allowing our field personnel to make purchases for specific projects, up to a certain amount.”

“When we were looking around, I asked a couple of friends what they were doing as far as controlling their expenses and what they thought was the best way to go,” Robert said. “Most of them are using a combination of corporate cards and online financial management tools to manage their cash flow.”

One of Bristlecone Construction’s recent projects is Ogden Street Flats, a 29-unit, $8.4 million apartment building in Denver that will integrate an existing 1930s auto shop with the new five-story structure. Bristlecone will complete the concrete and framing, and provide General Contracting Services. Rendering: Range Design and Architecture

HITT Contracting’s Co|Lab facility, set to open next summer, will be dedicated to testing products and ideas that will have a direct impact on the building industry. Designed by William McDonough + Partners, the cross-laminated timber (CLT) structure will serve as an exhibit, telling the story of mass timber buildings, living walls, and HITT’s application of VDC methodology and tools on the project. Courtesy HITT Contracting.

Boston University's Goldman School of Dental Medicine will increase its clinical space by 60% through a renovation and addition that are being conducted while the school stays open and continues to offer its services to students and the community. Image: SmithGroupjjr